Video Lesson
Prefer watching? This video covers the key concepts from this article.
Options Fundamentals
Options give you the right, but not the obligation, to buy or sell a stock at a specific price.
Calls vs Puts
- Call Option: Right to buy at the strike price
- Put Option: Right to sell at the strike price
Key Terms
Strike price, expiration date, premium, and implied volatility are essential concepts every options trader must understand.
Warning: Options are complex instruments. Start with paper trading before risking real capital.